Nu, Psnh Agree To Extend Merger

The merger agreement between Northeast Utilities and Public Service Co. of New Hampshire has been extended to June 30 to provide more time to win the necessary regulatory approvals.

The PSNH board of directors agreed Wednesday to a two-month extension of the merger agreement, which was to have expired today.

NU still needs permission from the federal Nuclear Regulatory Commission and the Securities and Exchange Commission to form a new subsidiary to operate the Seabrook nuclear power plant.

The companies hope to complete the merger before June 30 and NU completed a key step Wednesday with the sale of nearly 10 million new shares of common stock at a price of $22.75 a share. The stock has a par value of $5 a share.

The proceeds of the sale, which totaled nearly $220 million, will be used to complete NU's planned acquisition.

"Improved financial performance and lower interest rates allowed us to sell the shares at a price about 15 percent higher than we expected when we first proposed this affiliation three years ago," said Robert E. Busch, NU executive vice president and chief financial officer.